CubeSmart(US:CUBE)2025-02-28 21:30Company Growth and Properties - As of December 31, 2024, the company owned 631 self-storage properties with approximately 45.8 million rentable square feet, compared to 611 properties and 44.1 million square feet in 2023, representing a growth of 3.3% in rentable square footage[213] - The company managed a total of 902 stores for third parties as of December 31, 2024, bringing the total number of stores owned and/or managed to 1,533[213] - As of December 31, 2024, the company owned 598 same-store properties, with the remaining 33 being non same-store properties, which include recent acquisitions and developments[232] - The company acquired 16 stores in the quarter ended December 31, 2024, including 14 stores owned by consolidated joint ventures[236] - The company acquired a controlling interest in seven consolidated joint ventures that own 14 stores, contributing to the increase in investing activities[259] - The company acquired the remaining 80% interest in 191 IV CUBE LLC for $452.8 million, which included $44.4 million to repay existing indebtedness[278] Revenue and Financial Performance - Revenues increased from $1.050 billion in 2023 to $1.066 billion in 2024, an increase of $15.9 million, or 1.5%[239] - Net income attributable to the company's common shareholders decreased from $410.8 million in 2023 to $391.2 million in 2024, a decrease of $19.6 million, or 4.8%[239] - FFO attributable to the Company's common shareholders and third-party OP unitholders was $600.8 million in 2024, down from $615.1 million in 2023, representing a decrease of 2.5%[256] - Cash provided by operating activities increased by $19.9 million, from $611.1 million in 2023 to $631.1 million in 2024, an increase of 3.3%[258] - Other income decreased from $6.3 million in 2023 to $1.2 million in 2024, a decrease of $5.1 million, or 81.6%[245] Expenses and Costs - Property operating expenses rose from $294.8 million in 2023 to $317.8 million in 2024, an increase of $23.0 million, or 7.8%[240] - General and administrative expenses increased from $57.0 million in 2023 to $59.7 million in 2024, an increase of $2.6 million, or 4.6%[241] - Interest expense on loans decreased from $93.1 million in 2023 to $90.8 million in 2024, a decrease of $2.2 million, or 2.4%[242] Cash Flow and Financing Activities - Cash used in investing activities rose significantly from $93.8 million in 2023 to $174.0 million in 2024, an increase of $80.1 million, primarily due to acquisitions[259] - Cash used in financing activities decreased by $130.4 million, from $518.0 million in 2023 to $387.7 million in 2024[260] - The revolving credit facility decreased by $18.1 million, reflecting the use of available cash to repay the outstanding balance[281] Debt and Interest Rates - The average outstanding debt balance decreased from $3.02 billion in 2023 to $2.96 billion in 2024[242] - The weighted average effective interest rate on outstanding debt decreased from 3.04% in 2023 to 3.00% in 2024[242] - As of December 31, 2024, the company's consolidated debt included $3.00 billion of outstanding fixed-rate mortgage loans and notes payable[289] - A 100 basis point increase in market interest rates would decrease the fair value of fixed-rate mortgage debt and unsecured senior notes by approximately $105.7 million[290] - A 100 basis point decrease in market interest rates would increase the fair value of fixed-rate mortgage debt and unsecured senior notes by approximately $109.4 million[290] Occupancy and Market Conditions - The company experienced seasonal fluctuations in occupancy levels, typically higher during summer months due to increased moving activity[215] - Period end occupancy decreased from 90.3% in 2023 to 89.3% in 2024[240] - The company's stores in New York, Florida, California, and Texas contributed approximately 18%, 14%, 11%, and 9% of total revenues for the year ended December 31, 2024, respectively[219] - The company’s operating results are sensitive to changes in economic conditions that impact consumer spending, which could affect growth and profitability[216] Asset Changes - Storage properties, net increased by $87.0 million from 2023 to 2024, reaching $6.038 billion, primarily due to acquisitions and improvements[279] - Other assets, net rose by $20.3 million to $183.6 million, driven by the value assigned to in-place leases and a $5.0 million note receivable[280] - Accounts payable and other liabilities increased by $28.2 million, attributed to the timing of payments for real estate taxes and other payables[283] Future Expectations - The Company expects recurring capital expenditures for 2025 to be approximately $14.0 million to $19.0 million, with planned capital improvements and store upgrades between $12.5 million to $17.5 million[265] - As of December 31, 2024, the Company had approximately $71.6 million in available cash and cash equivalents, along with $849.4 million available for borrowings under its Revolver[269] - The effective interest rate on the Revolver as of December 31, 2024, was 5.52%[274] - The Company was in compliance with all financial covenants under its unsecured senior notes and revolving credit facility as of December 31, 2024[272][275]